Microsoft to Disclose Quarterly Azure Revenue in Reporting Shift

Microsoft will begin disclosing quarterly revenue for its Azure cloud business, ending a long-standing practice of reporting only growth rates. The move follows years of investor criticism and aligns the company's financial disclosures with those of competitors Amazon and Alphabet.

This change is part of a broader restructuring that reduces the company's reporting segments from three to two. The new Agents and Infra segment will combine Azure, Microsoft 365, and server licensing, while the Devices and Consumer segment will encompass Windows, Xbox, and search advertising. CEO Satya Nadella stated that the shift reflects how artificial intelligence is reshaping business models and blurring product boundaries.

In the June quarter, Azure revenue grew 42% to $29.42 billion, accounting for nearly 33% of total company revenue. Microsoft expects first-quarter Azure revenue to grow between 44% and 45% at constant currency.